TSX.V: CPO, Pink Sheets: CBBWF
VANCOUVER, July 27, 2017 /CNW/ - Cobalt Power Group Inc.
(the "Company") (TSX.V: CPO, OTC Pink: CBBWF) is pleased to
announce signing a non-binding letter of intent ("LOI") to acquire
four separate blocks of mineral claims (the "Properties") located
in the South Lorrain and Lorrain Townships, Ontario, encompassing approximately 7,400 ha
of prospective mineral lands. The Properties are currently owned or
leased by Canadian Cobalt Projects Inc. ("Canadian Cobalt"), a
privately held mineral exploration company.
Highlights
- Acquisition is comprised of approximately 7,400 ha of
strategically located mining claims in the Silver Center area of
the Cobalt Camp, Ontario.
- Cobalt Power will become one of the largest landowners in the
prolific Cobalt Camp/Silver Center with the addition of this land
package.
- Claim group is in close proximity to several historic mines,
including the former producing Keely and Frontier Mines in South
Lorrain Township, Ontario, as well
as the recently announced First Cobalt/Cobalt One lands.
- Presence of historical showings on the properties, combined
with the favourable geological setting, enhances the geological
potential for the properties.
- Combined land holdings for Cobalt Power Group are now
approximately 10,000 ha in the Cobalt Camp, Ontario.
"With the addition of this land package, our company will have
100% ownership in the mineral rights for one of the largest land
packages in the Cobalt Camp," comments Dr. Andreas Rompel, President & CEO. "Expanding
our contiguous parcels into the core of the historic Silver Centre
bodes well for continued exploration, increases our opportunity for
discovery and turns us into one of the dominant players in the
region."
Proposed Transaction
It is contemplated that the acquisition of the Properties will
be accomplished by Cobalt Power Group acquiring all of the issued
and outstanding shares of Canadian Cobalt in exchange for the
issuance, pro-rata of 35,000,000 common shares of Cobalt Power to
the existing shareholders of Canadian Cobalt and that at closing,
the shareholders of Canadian Cobalt will receive the benefit of a
1.5% net smelter returns royalty, of which 75% may be purchased at
any time in consideration for a cash payment of (CDN)$1,000,000. Following completion of the
transaction, Canadian Cobalt would become a wholly owned subsidiary
of Cobalt Power Group.
Cobalt Power will now initiate a 30-day due diligence period
wherein it will conduct a full due diligence investigation. The
definitive agreement and the closing of the acquisition remains
subject to a number of conditions, including approval of the TSX
Venture Exchange, as well as such other conditions as are customary
in transactions of this nature.
Cobalt Camp Properties
This large land package comprises 44 strategically situated
dispositions (43 unpatented mining claims and 1 mining lease on
patented land). The properties are generally underlain by Huronian
Cobalt Group metasediments with abundant occurrences of the
Nipissing diabase sill/dyke.
Both the upper and lower contacts of the sill occur on the
property. The Cobalt Group metasediments include quartzites
and arkoses of the Lorrain Formation, as well as significant
outcrops of siltstones and greywackes of the Coleman Formation,
which are locally in contact with the base of the sill.
There are several known cobalt occurrences found on the land
package - all reported in the Ontario Mineral Deposit Inventory
files:
- Labine-McMahon showing - samples collected from a
quartz-carbonate vein adjacent to an aplite dike contain cobaltite,
arsenopyrite and bismuthinite. An assessment of the heavy
material after a partial separation from the gangue returned:
32.54% As, 4.85% Fe, 21.09% Co, 1.18% Ni, 6.26% Bi and 0.09%
Zn. A sample of wall rock adjacent to a ¾" wide
quartz-carbonate vein assayed 1.10% Co and 0.21% Ni. Sample
was collected in 1956 and assayed by the Cobalt Resident
Geologist.
- Friday Creek showing - government reports show "a 20cm
quartz-calcite veins with 17 g/t Ag, in Nipissing diabase."
The mining lease included in the package is the Silver Eagle
property. Located on this property, the Silver Eagle mine
(which operated around 1918) produced 8,000 ounces of silver from a
6-meter section of mine workings that crossed the property from the
adjacent Wettlaufer Mine (cobalt was not recovered, as was typical
for that era). Geological mapping shows the claim to be
underlain by the Nipissing diabase
sill in contact with "undifferentiated" intermediate to mafic
volcanics, basalts and pillow lavas. This is the classic
setting for Cobalt Camp mineralization.
Swedish Properties
Cobalt Power Group will become entitled to negotiations
currently in progress with representatives of Canadian Cobalt
Properties regarding acquiring several exploration licenses in
historic cobalt mining areas of southern Sweden.
Additionally, the previously announced drill program at Smith
Cobalt has been completed, with a total of 1897 m drilled in nine
drill holes. Core logging and sampling is close to
completion. Assays are pending and results will be released
once they have been received and reviewed by the company.
About Cobalt Power Group Inc.
Cobalt Power Group Inc. is a publicly traded Canadian
exploration company listed on the TSX-Venture Exchange and U.S.
Pink Sheets (TSX-V: CPO, OTC Pink: CBBWF) focused on cobalt
exploration and development.
The Company has made a series of strategic property acquisitions
over the past year, seeking cobalt mineralization near Cobalt, Ontario - a region with a long history
of silver and associated cobalt production. Property holdings total
863.6 hectares (2134 acres) in contiguous and strategic claim
blocks. There are several historic mining operations on the
properties that are potentially accessible, including the Smith
Cobalt shaft and its underground workings.
About the Smith Cobalt Project
The Smith Cobalt project is underlain by a sequence of Archaean
volcanics which are uncomformably overlain by Huronian sediments.
These formations have been intruded by the Proterozoic-age
Nipissing diabase sill. Faulting,
on both a regional and local scale, has been found by surface
mapping and in drill cores. Polymetallic veining, and especially
pinkish-white carbonate veins, has also been reported. Thus, all
the necessary geological components of accepted mineralization
models for cobalt-silver have been identified on the
properties.
Chris M. Healey, P. Geo, V.P.
Exploration, and a Director of Cobalt Power Group is the qualified
person responsible for the technical content of this release, and
consents to its dissemination.
On behalf of the Board of Directors
"Andreas Rompel"
_________________
Dr. Andreas Rompel, President and
CEO
Cobalt Power Group Inc.
www.cobaltpowergroup.com
We seek safe harbor.
The TSX Venture Exchange Inc. has in no way passed upon
the merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
Forward Looking Information
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of the content of this
News Release. WARNING: The Company relies on litigation protection
for "forward looking" statements. Actual results could differ
materially from those described in the news release as a result of
numerous factors, some of which are outside the control of the
Company. This news release does not constitute an offer to sell or
a solicitation of an offer to sell any of the securities in
the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be
offered or sold within the United
States or to U.S. Persons unless registered under the U.S.
Securities Act and applicable state securities laws or an exemption
from such registration is available.
SOURCE Cobalt Power Group Inc